ARSENAL'S DEBT SOARS

From the Guardian:

Arsenal managing director Keith Edelman today insisted the club are very much "cash-rich" despite an increase in their overall debt to £262.1m.

The cost of the Gunners' move to their new Emirates Stadium impacted on the figures released today by the club's parent company, with overall net debt increased from £153.3m in 2005, a jump of £108.8m.

However, with the repayments of the debt now restructured over a longer term and match-day revenues set to rise significantly over the coming seasons, Edelman insists Arsenal are in good financial health.

"It is like an individual buying a new bigger house into which you have put more equity - you will have a bigger mortgage, but overall be in a stronger financial position," said Edelman.

"The two things are completely separate and you do not say 'you have no money to spend because you have a mortgage'. A mortgage is something you pay off every month, X amount over a number of years then you look how much cash you have in your pocket to spend. Well, we ended the year with £36m of cash in the bank, in our pocket to spend now, so we are very cash-rich, although we have got high debts, which relate effectively to the mortgage on our stadium."